GBP/USD 14 JUNE 2012

GBP/USD - follow me on twitter @fxdailyforecast and stocktwits.com/fxg

Price gave us the bearish cs formation at the B high yesterday signaling failure and a move lower down.

FOR TODAY:

We will look to sell after a rally followed by a bearish cs formation looking for price to fall down to 5410.

A sustained break of 5600 negates this view and opens the upside to further rallies.

A bullish cs formation at the 618/786 will initiate a long trade setup.

If we don’t get the setup we are looking for then we don’t trade.

SHORT: Will be going short only IF:

Today is a DABF trading day, we will look for price to continue down to test out limit at 5410. Price can either fall from current levels, or rally and give us another bearish cs formation before heading lower. Place stop 13 pips above the cs formation, max 1% risk. Limits will be down at 5410.

A sustained break of 5600 negates this view and opens the upside.

If we don’t get the setup we are looking for then we don’t trade.

LONG: Will be going long today only IF:

We will look for support down at the 618/786 after confirming bullish cs formations.  Place stop 10 pips below the cs formation, max 1% risk.

If we don’t get the setup we are looking for then we don’t trade.